Income Tax Officer, New Delhi V. M/s PRS Securities Pvt. Ltd., New Delhi

ITA 4447/DEL/2010

• Counselvise Citation: [2011] 135 COUNSELVISE.COM (IT) 0046 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-03-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: F
• Next Hearing Date: 25-03-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 05-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P N CHAWLA
• Keywords: Tax effect
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : F : NEW DELHI BEFORE SHRI I.P. BANSAL, JUDICIAL MEMBER AND SHRI K.G. BANSAL, ACCOUNTANT MEMBER ITA NO.4447/DEL/2010 ASSESSMENT YEAR : 2001-02 INCOME TAX OFFICER, WARD 14 (1), ROOM NO.209, 2 ND FLOOR, CR BUILDING, IP ESTATE, NEW DELHI. VS. M/S PRS SECURITIES PVT. LTD., 307, BASEMENT KAMAL PLAZA BUILDING, GURUDWARA ROAD, KAROL BAGH, NEW DELHI 110 005. PAN : AAACP6269P (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P.N. CHAWLA, ADVOCATE REVENUE BY : SHRI ASHOK PANDEY, CIT, DR ORDER PER I.P. BANSAL, JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE. IT IS DIRECT ED AGAINST THE ORDER OF THE CIT (A) DATED 12 TH AUGUST, 2010 FOR ASSESSMENT YEAR 2001- 02. GROUNDS OF APPEAL READ AS UNDER:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT (A) ERRED IN DELETING THE ADDITION OF RS.7,00,000/- MADE ON ACCOUNT OF SHARE APPLICATION MO NEY U/S 68 OF THE INCOME TAX ACT, 1961. 2. THAT ON THE FACTS AND CIRCUMSTAN CES OF THE CASE AS WELL AS IN LAW THE LD. CIT (A) ERRED IN IGNORING THE FACT TH AT THE JUDGEMENT OF THE SUPREME COURT IN THE CASE OF LOVELY EXPORTS (P) LTD., 216 CTR 199 (SC) CANNOT BE EXTENDED TO A SITUATION WHERE A MECHANISM HAS BEEN FORMED TO INTRODUC E UNACCOUNTED MONEY IN THE BOOKS OF ACCOUNTS WITH THE HELP OF ACCOMMODATION ENTRY PROVIDERS, WHICH HAS BEEN EXPOSED BY DEEP AND DETAILED INVESTIGATION CARRIED OUT BY THE INVESTIGATION WING OF THE DEPARTMENT. ITA NO.4447/DEL/2010 2 THE INVESTIGATION WING OF THE DEPARTMENT. 3. THAT THE CIT (A) HAS ERRED IN APPLYING THE JUDGEME NT OF THE HONBLE SUPREME COURT IN THE CASE OF M/S LOVELY EXPORTS (P) LTD. 216 CTR 199 (SC) WHICH IS NOT APPLICA BLE WHERE THE SHARE APPLICATION IS NOT RECEIVED IN A PUBLI C ISSUE. 4. THE APPELLANT CRAVES TO THE ALLOWED TO ADD, DELETE OR AMEND ANY OTHER GROUNDS OF APPEAL. 2. AS IT CAN BE SEEN FROM THE GROUNDS OF APPEAL, THE D EPARTMENT IS CONTESTING THE DELETION OF ADDITION OF ` 7 LAC. IT IS SEEN THAT THE TAX EFFECT ON THE PRESENT APPEAL EXCLUDING INTEREST INCLU DING SURCHARGE IS A SUM OF ` 2,76,850/-. THE TOTAL INCOME OF THE ASSESSEE A S ASSESSED BY THE ASSESSING OFFICER IS ` 7,19,030/- ON WHICH TAX EFFEC T COMES TO ` 2,84,376/- (INCLUDING SURCHARGE). THEREFORE, IN ANY CASE THE TOTAL TAX EFFECT IN THE PRESENT APPEAL IS A SUM LESS THAN ` 3 LAC. ACCORDING TO THE RECENT INSTRUCTION NO.3/2011 OF 9 TH FEBRUARY, 2011 ISSUED BY THE CBDT, MONETARY LIMIT FOR FILING THE APPEAL IN INCOM E-TAX MATTERS BEFORE THE TRIBUNAL HAS BEEN FIXED AT ` 3 LAC. THESE INSTRUC TIONS HAVE BEEN HELD TO BE APPLICABLE TO ALL PENDING APPEALS BY THE JURISDICTIONAL HIGH COURT IN THE DECISIONS IN THE CASES: (I) CIT VS. M/S P.S. JAIN & CO. IN ITA NO.179/1991, O RDER DATED 2 ND AUGUST, 2010. (II) CIT VS. DELHI RACE CLUB IN ITA NO.128/2008 , OR DER DATED 3 RD MARCH, 2011. 3. IN THIS VIEW OF THE SITUATION, THE APPEAL FILED BY THE REVENUE BEING BELOW THE MONETARY LIMIT FIXED BY THE AFOREME NTIONED CIRCULAR, IS UNADMITTED AND DISMISSED IN LIMINE. ITA NO.4447/DEL/2010 3 4. IN THE RESULT, THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 25.03.20 11. SD/- SD/- [K.G. BANSAL] [I.P. BANSAL] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, 25.03.2011. DK COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES